JOHANNSBURG (miningweekly.com) – Aim-listed Gem Diamonds has warned that it may need to reassess its operating cost guidance for the full year, as a result of the impact of extreme weather conditions on its Letšeng mine, in Lesotho.
Recent excessive snow falls and severe winds have limited access to the mine and damaged overhead power lines.
Standby generators installed at the mine have been used to mitigate some of the impact, allowing the processing plants to operate at reduced rates.
The Lesotho Electricity Company is carrying out repairs to damaged overhead power lines and external power supply to the mine is expected to be fully restored in the short term.
However, Gem expects the power interruptions to impact ore tons treated and operating costs for the full-year, but says recovered carats should not be materially affected, owing to the strong operational performance in the first half of the year.
The company will announce its results for the six months to June 30 on August 17.